I'm getting this 'Content are not found' too. What's the fix?
I've checked the checkbox in site definitions to remote (even though it's the same folder as the development folder), but still no joy.
I have tried to get this working for hours now, and I've eventually had to go back to my old system with Mac Lion, CS6 and an old version of Design Extender that is apparently unstable in someway based on what you've told me Jason. I can't tell you what version of DE it is because I can't launch extension manager to check, let alone upgrade!